August 24, 2016
EU Interchange Caps Go into Effect
Dec. 10, 2015
Yesterday, interchange caps passed by the European Parliament in March and the European Council in April went into effect across the European Union. Interchange rates on all domestic credit card purchases cannot exceed 0.3 percent of the transaction value, with a cap of 0.2 percent on debit purchases. According to the British Retail Consortium, a trade group representing U.K. merchants, the change will save EU businesses £480 million ($729 million) annually.
“This legislation, combined with the upcoming Payment Services Directive, will establish a level playing field for payments across Europe,” said Spanish Member of Parliament Pablo Zalba, who took the lead on the legislation when it was passed in the spring by Parliament. “It should enhance fee transparency, stimulate competition and enable both retailers and users to choose the card schemes that offer them the best terms.”